Lubricants Market in India

Posted By Team MCG On


India occupies fifth position in the global lubricants market after US, China, Russia and Japan.  Indian lubricants market which was a monopoly of public sector oil marketing companies, has witnessed the entry of multinational and domestic private players post liberalization. Over the recent years, consumer awareness about usage of lubricants has improved leading to an increased demand for high performance products. The domestic lubricants industry is witnessing stiff competition among players leading to an overall shift in perception of lubricants market from a volume driven market to a value driven market.

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Based on application, lubricants are broadly classified as automotive lubricants and industrial lubricants. Engine oil, gear oil, greases and hydraulic and transmission fluid are the products under automotive lubricant segment. Industrial lubricants comprise process oil, general industrial oil, metalworking fluids, industrial engine oil and greases

Lubricant consumption in India stood at around 2.9 million MT during 2013-14, registering a healthy growth rate of 7.6% during 2008-13; the market was valued at around INR 260 billion. Automotive lubricants account for around 47% of the lubricant usage in India; industrial lubes and process oils together account for the rest. Original equipment manufacturers (OEM), petrol pumps and retail trade are major channels in the domestic automotive lubricants market. Petrol pumps and retail trade account for around 90% of the total automotive lubricants sale, of which retail trade accounts for a major share of around 74%. Retail trade comprising wholesale distributors, auto spare shops, service centres, lube oil shop and supermarkets is considered a profitable model among the distribution channels

Market for industrial lubricants (including process oils) was estimated at around 1.5 million MT in 2013-14 and expected to grow at a rate of 1 to 2% annually for the next five years

Core industrial sectors like cement, coal, steel, engineering, sugar, marine, defense, railways, fertilizer are some of the major end-users of industrial lubricants

Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., and Bharat Petroleum Corporation Ltd. are the three leading PSU in lubricants sector who account for around 60% of the lubricants market. Recently, Gulf Petrochem Group has planned to invest INR 5 billion in Indian lubricants market including setting up two fuel storage terminal with a capacity of up to 600,000 cubic metres.  The company earlier acquired Sah Petroleum and Royal Dutch Shell Specialties’ bitumen plant  atSavli, Vadodara, Gujarat. Gulf Oil India.